Following the recent FOMC meeting, Ethereum and Bitcoin have reclaimed key resistance levels, raising questions about Ethereum's potential to lead a market recovery.
Impact of FOMC Meeting
The recent FOMC meeting, which highlighted a slowing economy, led to Bitcoin and Ethereum strengthening their positions by reclaiming key resistance levels. This development has sparked market interest in the ongoing situation.
Market Speculation Amid Economic Concerns
Amid concerns over the impact of tariffs on the economy, the Federal Reserve has kept the borrowing rate unchanged at 4.25%-4.5%. Speculation about two potential rate cuts this year has fueled market interest. With signs of easing inflation and increasing pressure on the labor market, the central bank may adopt a more accommodating policy. Bitcoin rose by 5.02%, breaking through the $85k resistance level, while Ethereum gained 6.45%, reclaiming the $2k mark after a prolonged consolidation.
ETH vs. BTC: Who Leads the Recovery?
Fundamentals are crucial in confirming this trend. Ethereum's reclaiming of the $2k level suggests significant capital inflows. On-chain data confirms that Donald Trump's World Liberty Financial has resumed accumulating Ethereum, transferring 25 million USDC to a new wallet and purchasing 4,468 Ethereum at $2,238. Meanwhile, Bitcoin ETFs recorded four consecutive days of net inflows, reinforcing the current market price as a strong 'dip-buying' zone. For Ethereum to establish dominance, the ETH/BTC pair needs to break key resistance at $0.025, supported by sustained capital rotation from Bitcoin into Ethereum. Without a confirmed breakout, speculative volatility remains, leaving the broader market recovery uncertain.
The market remains in a state of uncertainty as Ethereum and Bitcoin continue to vie for dominance. Ethereum needs to reclaim the $2.5K resistance for a prominent lead over Bitcoin. Otherwise, market instability may lead to further fluctuations.
